International Women's Day was celebrated in spectacular fashion in Larnaca as England and Scotland traded goals and misses in a helter-skelter of a group game that either side could have won even if neither really deserved victory.

Two years ago in this same tournament the Scots ended 34 years of hurt with a 2-0 victory over England, this after suffering 17 successive defeats by the Auld Enemy. And lightning looked set to strike for a second time as Anna Signeul's team twice led. But England also had their noses in front on two occasions, the second with 13 minutes remaining, only for Scotland's substitute Emma Mitchell to hit an 82nd-minute equaliser.

"What a crazy game," said the England coach, Hope Powell. "We didn't manage ourselves very well. Scotland got off to a quicker start and it was always a fight after that. They were very tenacious and credit to them. After a fraught first half the second was more settled, and after taking the lead so late we should have seen the game out. So it was a was disappointing end for us."

The Scotland coach, Signeul, said: "After starting so well and controlling the first half it was disappointing to go behind on a couple occasions. But the performance overall was good. Kim Little was fantastic, but I was pleased with the whole team – it was a very together performance."

England should have gone ahead after just three minutes, but following the striker Ellen White's miss Powell's team might then twice have gone behind before the Scots took the lead. Little forced the goalkeeper Rachel Brown into a fine diving save and Jane Ross missed the target from close range.

But Ross quickly made amends for her error, producing the 18th–minute through-ball that Lisa Evans collected to race into the penalty area and swerve around Brown before sliding the ball into the empty net.

The outstanding Little almost stretched the lead with a first-time effort that flew just wide, then she drove in a low cross-shot that deflected off the England captain, Casey Stoney, for a corner. But after controlling the opening half-hour the Scots were pushed back as England began to find some cohesion in their play.

The left-back Rachel Unitt crossed for White to head in the equaliser five minutes before the interval. And a minute into stoppage time the left winger Toni Duggan drove in a 10-yard shot from a neat pass by the midfielder Fara Williams.

England looked set to take control, but Signeul's half-time team talk had a more immediate effect than Powell's as the Scots stormed back into the lead with two quick goals. Ross brought the scores level with an angled 48th-minute shot, and three minutes later Little hit the corner of the net from 12 yards.

Powell's team, just as in the first half, took time to hit their stride but once they did the goals arrived. The striker Rachel Williams drove home a 20-yard shot to equalise in the 73rd minute and the substitute Kelly Smith forced in a rebound after the goalkeeper Gemma Fay had blocked Duggan's 77th-minute shot.

The last word went to Scotland, however, Little sending a pass into the path of Mitchell for the substitute to tuck in the last goal of the game eight minutes from time.

England must now beat New Zealand on Monday to top the group and thus reach the final, while Scotland must at least draw with Italy to avoid finishing bottom.